Title
Resolution to Approve a Construction Contract with Lanzo Trenchless Technologies, Inc. - North for the High Level Trunkline Sanitary Sewer Rehab Project ($2,178,595.00)
Memorandum
Attached for your review and approval, please find a resolution that awards a construction contract to Lanzo Trenchless Technologies, Inc. - North for the High Level Trunkline Sanitary Sewer Rehab Project.
Project Description
This project consists of lining approximately 4,800 feet of 33-inch sanitary sewer beginning at W. William Street by S. First Street and extending south along the railroad right-of-way, S. Ashley St., E. Madison St., S. Fifth St., Hill St. and terminating at S. Division near E. Hoover Avenue. In addition, the project will line 21 sanitary sewer manholes to aid in limiting stormwater infiltration into the sanitary sewer system. Lining is a trenchless technology which enables the pipe to be repaired without disturbing the surface above. The lining of this sanitary sewer is critical to extending the service life of these pipes. The project is expected to begin in November 2019.
Plans and specifications were advertised through BidNet (ITB No. 4600). Five bids were received and opened on September 16, 2019. The lowest responsible bid was submitted by Lanzo Trenchless Technologies, Inc. - North in the amount of $2,178,595.00 which was $578,595.00 above the engineer's estimate. Although the Engineer’s Estimate was based on recent bid prices, it did not include a number of factors specific to this project, such as the location of the project in the downtown area and the requirement that the project utilize styrene-free liner material. In addition, access to portions of the sanitary sewer and flow control will require additional work by the contractor. Attached is a summary of the bids received for the project.
Lanzo Trenchless Technologies, Inc. - North complies with the requirements of the non-discrimination and living wage ordinances.
Budget/Fiscal Impact: The City of Ann Arbor Capital Improvements Plan (CIP) includes the High Level Trunkline Sanitary Sewer Rehab Project (UT-SN-16-13). Funding for the project is included in the approved Sewage Disposal System capital budget.
Staff
Prepared by: Nicholas S. Hutchinson, P.E., City Engineer
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Howard S. Lazarus, City Administrator
Body
Whereas, The City of Ann Arbor Capital Improvements Plan (CIP) includes the High Level Trunkline Sanitary Sewer Rehab Project (UT-SN-16-13);
Whereas, It is desirable to extend the service life of the existing sanitary sewer infrastructure;
Whereas, Competitive bids were received by the Office of Procurement on September 16, 2019 and Lanzo Trenchless Technologies, Inc. - North was the lowest responsible bidder with a submitted bid of $2,178,595.00;
Whereas, It is now necessary to enter into a contract with Lanzo Trenchless Technologies, Inc. - North for the performance of this work; and
Whereas, Lanzo Trenchless Technologies, Inc. - North, Inc. complies with the requirements of the Non-Discrimination and Living Wage Ordinances;
RESOLVED, That a contract in the amount of $2,178,595.00 be awarded to Lanzo Trenchless Technologies, Inc. - North for the construction of the High Level Trunkline Sanitary Sewer Rehab Project;
RESOLVED, That a contract contingency amount of $210,000.00 be established within the project budget and that the City Administrator be authorized to approve additional change orders to the construction contract with Lanzo Trenchless Technologies North not to exceed $210,000.00 in order to satisfactorily complete this project;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said contract after approval as to form by the City Attorney, and approval as to substance by the City Administrator;
RESOLVED, That the City make the following declaration for the purposes of complying with the reimbursement rules of Treasury Regulations 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the Project with proceeds of Bonds; and
RESOLVED, That the City Administrator be authorized to take necessary administrative actions to implement this resolution, including issuing temporary and permanent Traffic Control Orders and night work authorizations as required for the construction of the project.